Minister Lynne Brown: Eskom Development Foundation report

Eskom Development Foundation report on MMMD multi-purpose centre clinic

Councillors and officials of the Moses Kotane Municipality
Eskom officials
Representatives of the Eskom Development Foundation
Representatives of the Health Department (national, provincial and district), Department of Land Reform andthe Department of Public Enterprises
Members of the MMMD Community Trust
Members of the Mokgalwaneng community
Friends, comrades and colleagues
Good morning, goeie môre, dumelang

I would like to start off by thanking you for the welcome you have given me; for reminding me that there is much for us to celebrate in South Africa. And much that remains to be done!

To be honest, when I visit villages such as yours I feel that I can do without Eskom because your spirit recharges my batteries. And I’d sleep better at night.

Ladies and gentlemen

We can’t really do without Eskom.

If you follow the news you’ll be forgiven for thinking the company is on its last legs – awaiting a priest to read the last rites. But that is not the truth.

It has been the subject of very serious allegations of conflicts of interest and corruption. It is not just in Eskom’s interest, but the entire country’s interest, that these allegations are proven or removed from the table – as quickly as possible.

That is why I made repeated calls this year for further inquiries into these matters.

The President’s announcement that he would support the establishment of a judicial commission into alleged state capture will be very good for Eskom and other state-owned companies.

In the meantime, I have announced an investigation by the Special Investigations Unit supported by a preferably a retired judge to look into coal contracts and procurement. It is here that most of the alleged problems lie.

If Eskom was not involved in coal procurement most people would agree that it’s doing quite a good job.

It is important to understand why the coal contracts are so “hot”: They are worth billions of rands. For many years, the contracts to supply coal to Eskom were held by white companies only. Not much has changed. Some of these contracts are coming up for renewal. Those who hold them don't want to lose them. Others are very keen to grab them.

There are many bulls in the kraal.

We must find ways, when the contracts are renewed, of bringing in more black-owned companies. They must be brought in through legal tender processes.

People of Mokgalwaneng

I am telling you these things because it is important for all South Africans to be part of the discussion about why a healthy Eskom is so critical to our nation.

Eskom doesn't just keep the lights on, although that is important.

Every week it is rolling out electricity connections to more and more South Africans, in more and more villages across the nation. And it is supplying the power that industry needs.

Eskom is a giant company owned by the state. It is the fourth largest electricity regulator in the world. More than 46 000 South Africans work for Eskom, putting food on their families’ tables. This makes it among the largest employers in the country.

Then there are all the people who work for companies who supply goods and services to Eskom and its fleet of power stations – from coal, to industrial and mechanical equipment, to the maintenance of buildings, to catering to security. That must be at least another 100 000 jobs.

But, like they say in the adverts, that’s still not all. Eskom builds infrastructure. Its build programme has provided jobs for tens of thousands workers in the construction industry. At the peak of its construction, last year, the new Kusile Power Station had 17 000 workers on site.

If you total up all those numbers it gives you a clear picture of why we say Eskom is a key lever in a developmental state such as ours with extreme levels of inequality, poverty and unemployment.

It is an engine of South Africa’s economy.

Ladies and gentlemen

Because Eskom is a State-Owned Company, which means it is owned by the people of South Africa – all of us – it is very different to privately owned companies like Shoprite or Engen.

Private businesses make money for their shareholders. State-Owned Companies must also be careful about money. But instead of generating profits for the few, they must profit the majority.

State-Owned Companies must build infrastructure, create jobs – and with whatever money they have over they must further develop the people and facilities, such as through this clinic.

They call this kind of non-core spending, Corporate Social Investment or CSI. Because Eskom is a giant State-Owned Company, it is able to take on very meaningful community projects.

I am very proud of the Eskom Development Foundation’s work, and particularly, of the fruits of its relationship with the MMMD Community Trust.

It is even more pleasing that Eskom is able to do all these things, and will still make a small profit, again, this year. And it is very positive that although Eskom is entitled to draw more money in Government loans, it has not added extra financial pressure on the State.

Programme director

It is Youth Month, so with your permission I’d like to send a quick message to the young members of the community.

The message is simple: Study maths and science. Our State-Owned Companies need young people with those skills. They need pilots, engineers, accountants, lawyers.

Last year, the six State-Owned Companies in the Public Enterprises’ portfolio (Eskom, Transnet, Denel, SA Express, SAFCOL and Alexkor) collectively enrolled nearly 9 000 trainees in various critical skills programmes. And nearly 1 800 learners received bursaries for the current financial year.

Let me finish by addressing the women of this community. I know that women in poorer communities bear particular burdens, and that access to health facilities for you and your children shouldn't be one of them.

This clinic will benefit all in the community, men, women and children. But I am particularly pleased by what it means for women, and mothers in particular.

I thank you.

Kea leboga.

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